Tracker, Financial Services Regulation & Compliance - Banking

Domestic

Central Bank of Ireland (CBI) publishes an introductory statement by Governor Patrick Honohan at the Oireachtas Banking Enquiry

This statement is to be considered an introduction in the event that the Banking Enquiry invites Governor Honohan back to expand on his views on what alternative courses of action the Government might have taken in September 2008. Governor Honohan critiques the decision that was made, noting, amongst other things, the costly nature of guaranteeing subordinated debt, and the failure to consult.  The statement is concluded by reference to the importance of maintaining perspective on the decision ultimately taken in September 2008.

EU & International 

European Banking Authority (EBA) publishes benchmarking package

The benchmarking package relates to the internal approaches that EU institutions use to calculate own funds requirements for credit and market risk exposures.  These define the benchmarking portfolios, as well as the methodology that competent authorities in the EU use in order to assess the quality of institutions' internal approaches for capital calculation purposes. The EBA also published the final draft of its regulatory technical standards (RTS). The RTS outline procedures for sharing the assessments between competent authorities, as well as standards to be used by competent authorities to assess internal approaches that banks apply to calculate their capital requirements for market and credit risk.

European Banking Authority (EBA) defines requirements for business reorganisation plans

The EBA has announced that it will be holding a public consultation on its draft Regulatory Technical Standards (RTS) on the content of 'Business Reorganisations Plans and Progress Reports' and Guidelines on assessment.  Both of these have been drafted in respect of the Banking Recovery and Resolution Directive.  In this context, the EBA is calling for credible resolution plans to help restore confidence in the long term viability of institutions.  Consultation submissions will be accepted until 9 June 2015.

European Banking Authority (EBA) advises on resolution procedures for EU banks

This is a response to the call for advice from European Commission on the resolution framework for EU banks, covering the definition of critical functions and core business lines and rules for the exemption of liabilities from the application of the bail-in tool.  As regards the bail- in exemptions, the EBA noted that these exemptions should be applied on a case-by-case basis, rather than based on the characteristics of institutions.  It was also noted that this exemption should be applied cautiously.

European Banking Authority (EBA) updates its risk dashboard for EU banking sector

This version of the EBA's periodic risk dashboard outlines the main risks and vulnerabilities in the EU banking sector from its review of 55 banks in third quarter of 2014.  A positive trend noted is the fact that EU's banks' capital positions are at their highest levels since 2009.  Non-performing loans, while stabilised in this period, are still at quite a high level. Equally, profitability of EU banks is still at quite low levels.

European Banking Authority (EBA) publishes its final guidelines on standardised fee terminology for payment accounts within the EU

This is the first step to standardise terminology throughout the EU, in accordance with the requirement set out in the EU Payment Account Directive.  EU competent authorities in each Member State must now establish a provisional list of the most representative services of a payment account that are subject to a fee and are offered by at least one payment service provider in each jurisdiction.

For further information please contact a member of the Financial Regulation team.

Date published: 2 April 2015